Rollover comparison
Charles Schwab → Fidelity 401(k) rollover
If you're rolling a 401(k) FROM Charles Schwab TO Fidelity, here are the practical mechanics: what forms you'll fill out, how long it takes, whether ACATS is supported, and what specific gotchas to watch for at each custodian. This page documents the process; it does not recommend one custodian over the other.
Side-by-side
| Field | Charles Schwab | Fidelity |
|---|---|---|
| ACATS eligibility | ACATS (electronic) eligible — typical processing 3–5 business days | ACATS (electronic) eligible — typical processing 3–5 business days |
| Processing time | 3-5 business days (ACATS); 7-10 days for paper | 3-5 business days (ACATS); 7-10 days for paper |
| Transfer form | Transfer/Rollover Request form (online or paper) | Transfer of Assets (TOA) request — initiated at receiving institution |
| Customer-service phone | 1-800-435-4000 | 1-800-343-3548 |
| Customer-service hours | 24/7 | Mon-Fri 7am-11pm ET, Sat-Sun 9am-5pm ET |
Known pitfalls at Charles Schwab
Warning: Schwab acquired TD Ameritrade in 2023 and completed the platform migration in 2024 — if your old plan was at TDA, it's now on the Schwab platform with a NEW Schwab-format account number. Use the new number for ACATS, not the legacy 9-digit TDA number; statements after September 2023 show the new number in the header.
Warning: Schwab will offer to 'help you decide where to roll it' before processing — this is a sales pitch for Schwab IRA. Decline politely if you've already picked a destination. The rep will sometimes pass the call to a Schwab Financial Consultant; you can decline that hand-off too without slowing down the transfer.
Warning: If transferring TO Schwab as the destination, their online wizard is excellent. If transferring FROM Schwab to another custodian, initiate from the receiving side (don't fill out Schwab's outbound paper form — slower). The receiving side's ACATS pull is processed by Schwab's transfer desk within 1-2 business days.
Warning: Schwab won't transfer fractional shares of non-Schwab mutual funds via ACATS — they sell fractional positions on your behalf and send the proceeds as cash. If you held fractional Vanguard, Fidelity, or American Funds mutual funds inside your Schwab brokerage, expect a small cash residual showing up at the destination 2-3 days after the in-kind transfer completes.
Warning: If your account migrated from TD Ameritrade, some pre-printed forms may still have the legacy TDA cost-basis lot details — Schwab's system has the correct migrated cost basis, but if your destination custodian asks for a transfer-of-basis report, request it from Schwab's tax-reporting desk specifically (the standard report only shows current Schwab basis, not the TDA history).
Known pitfalls at Fidelity
Warning: Fidelity defaults to mailing a paper check if you initiate the transfer FROM their side — call the receiving custodian first to initiate an ACATS pull instead.
Warning: If you have employer stock in the 401(k) (NUA-eligible), do NOT roll it directly — separate the basis cost first or you lose the NUA tax treatment forever.
Warning: Fidelity will ask whether to sell your holdings and transfer cash, OR move them as-is (the industry term is "in-kind"). Moving as-is only works if the destination custodian supports the same funds; otherwise it sells your holdings and transfers cash (the default).
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Start my free previewFrequently asked questions
- How long does a Charles Schwab to Fidelity 401(k) rollover take?
- Both Charles Schwab and Fidelity support ACATS electronic transfers. Initiate the transfer from the Fidelity side (not Charles Schwab) to trigger an ACATS pull — assets typically arrive in 3–7 business days. Add 1–3 days for the destination to process and invest. Total: approximately 5–10 business days from the date you submit the transfer request.
- Do I call Charles Schwab or Fidelity first to start the rollover?
- Call or log in to Fidelity first. For ACATS-eligible transfers, the receiving institution initiates the pull — Fidelity sends a request to Charles Schwab electronically, and Charles Schwab releases the assets. Starting at the destination is faster and avoids Charles Schwab defaulting to mailing a check.
- Will I owe taxes when rolling over from Charles Schwab to Fidelity?
- A direct trustee-to-trustee rollover from a traditional 401(k) to a traditional IRA or new 401(k) is NOT a taxable event — provided funds move custodian-to-custodian and are never paid to you personally. No federal or state income tax, no 10% early-withdrawal penalty. If you're rolling into a Roth IRA (conversion), the pre-tax balance does become taxable income for the year of conversion — that's a deliberate tax election, not a mistake. Request "direct rollover" language explicitly with Charles Schwab so the 1099-R is coded Box 7 = G (direct rollover) rather than Box 7 = 1 or 2 (distribution), which would incorrectly trigger withholding and IRS scrutiny.
- Does Charles Schwab charge a fee to roll over my 401(k)?
- Most employer 401(k) plans administered by Charles Schwab do not charge an outbound rollover fee, but some employer plan documents do include a distribution or processing fee ($25–$75 is common). Check your Summary Plan Description (the document your former employer sent when you joined the plan) — the fee schedule is in there — or ask the Charles Schwab rep when you call (1-800-435-4000). Charles Schwab may also liquidate any holdings that can't transfer in-kind before sending, so you could face a brief period out of the market during the transfer.
- What's the 60-day rule for a Charles Schwab to Fidelity rollover?
- If you received a check made out to you (an indirect rollover), you have exactly 60 calendar days from the date of distribution to deposit the full gross amount — including the 20% the custodian withheld — into a qualifying retirement account. If you initiate a direct trustee-to-trustee transfer instead (the recommended path), the 60-day clock does not apply because you never receive the funds personally. For direct transfers, initiate immediately — Charles Schwab's processing time is 3-5 business days (ACATS); 7-10 days for paper, which can consume a significant portion of your window if you wait.
- Can I roll my Charles Schwab 401(k) into a Fidelity IRA directly?
- Yes — a direct rollover from a Charles Schwab 401(k) to a Fidelity traditional IRA is fully legal under IRC §402(c). Fidelity supports ACATS, so the cleanest path is to open the IRA at Fidelity first, then have Fidelity initiate an ACATS pull from Charles Schwab. The one exception: if your Charles Schwab 401(k) contains employer stock with significant appreciation, review Net Unrealized Appreciation (NUA) tax treatment with a CPA before rolling — NUA elections must be made at the time of distribution and cannot be undone.
Related
Charles Schwab info verified 2026-05-15 · Fidelity info verified 2026-05-15. Spot a change? Tell us.
This comparison is informational only — it documents the procedural mechanics of rolling over a 401(k) between Charles Schwab and Fidelity. nesthelm is not an investment adviser or broker-dealer; we do not recommend either custodian over the other. Consult a CPA or licensed financial advisor for advice on your specific situation.